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KB Home (KBH) closed at $53.47 in the latest trading session, marking a -0.35% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.67%. Meanwhile, the Dow experienced a rise of 1.07%, and the technology-dominated Nasdaq saw an increase of 2.5%.
Coming into today, shares of the homebuilder had lost 8.38% in the past month. In that same time, the Construction sector lost 6.62%, while the S&P 500 lost 6.57%.
The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report. On that day, KB Home is projected to report earnings of $1.57 per share, which would represent a year-over-year decline of 26.98%. Simultaneously, our latest consensus estimate expects the revenue to be $1.57 billion, showing an 8.34% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.34 per share and a revenue of $6.83 billion, signifying shifts of -13.14% and -1.49%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for KB Home. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 11.88% lower within the past month. KB Home is holding a Zacks Rank of #4 (Sell) right now.
Looking at valuation, KB Home is presently trading at a Forward P/E ratio of 7.31. Its industry sports an average Forward P/E of 7.69, so one might conclude that KB Home is trading at a discount comparatively.
Meanwhile, KBH's PEG ratio is currently 2.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Building Products - Home Builders industry stood at 1.22 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 30% echelons of all 250+ industries.